Crypto Industry Supports Compromise on CLARITY Act, Urges Senate Banking Committee to Move Forward

Within hours of the release of a compromise text by US Senators Thom Tillis and Angela Alsobrooks on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for a markup of key market structure legislation. The text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner similar to bank deposits, but carves out rewards programs tied to legitimate activities or transactions. The Blockchain Association CEO, Summer Mersinger, praised the deal as a step in the right direction, emphasizing the need for a clear legal framework to prevent top talent and innovative companies from relocating. The Crypto Council for Innovation endorsed the bill while expressing concerns that the new language extends the prohibition framework beyond last year's GENIUS Act. CEO Ji Hun Kim urged the committee to advance the bill, stating that the goal is to ensure the US leads in crypto. Circle Chief Strategy Officer Dante Disparte and Coinbase CEO Brian Armstrong also endorsed the deal, with Disparte pointing to the growth of USDC in cross-border payments and capital markets collateral. The Senate Banking Committee had postponed an earlier markup in January, but the yield language has been a major obstacle. To comply with the new rules, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' one.